Swedish electric vehicle manufacturer Polestar, owned by Geely, the Chinese automotive giant, will no longer be able to sell its new cars in the U.S. market following a decision made under the Trump administration’s “Connected Vehicle Rule”. This rule restricts sales of vehicles with Chinese software or hardware.
Polestar had requested special authorization but was denied, leaving it unable to sell its latest models, Polestar 3 and Polestar 4, in the U.S. market. The company says it will continue selling existing stock and support customers, though it points out that 94% of its retail sales volume for Q1 2026 came from markets outside the U.S.
The US decision comes after Volvo – Polestar’s sibling company also owned by Geely – was granted similar authorization just months earlier. This highlights a potential disparity in how auto manufacturers with Chinese ties are treated under American regulations.
Strategically, Polestar now focuses on Europe, where it can thrive without these regulatory hurdles. It remains to be seen if this decision will change as the geopolitical climate evolves.
